Central’s pet business remains flat in Q3
The segment reached sales of $505 million (-0.6%) while operating income decreased by 12%.
The Californian-based supplier posted global net sales of $1 billion, 2% less than the same period for 2021.
Pet segment operating income decreased to $63 million “largely driven” by inflationary headwinds and heightened investment spending, partially offset by improved pricing.
The company’s dog and cat treats, toys and outdoor cushion businesses “notably” contributed to the stabilization of the category. On the other hand, Central Garden & Pet faced a reduction in sales of pet beds.
In the second quarter of the year the company posted net sales of $954 million.
2022 outlook
The company maintains its guidance for the rest of the year despite some challenges ahead including “significant inflationary headwinds across commodities, freight and labor.”
Central Garden & Pet continue to monitor “demand, price elasticity, and continued supply chain pressures,” the company claimed.
It will also focus on profitable long-term growth, including expanding manufacturing capacity and investing in automation. It also plans to invest in “consumer insights, digital capabilities, brand building, innovation.”
“We remain confident in our Central to Home strategy and will make purposeful investments to capture opportunities in the pet and garden industries that will drive profitable long-term growth,” stated CEO Tim Cofer.
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